Bitcoin Surges 4% to $116,500 Triggering $1 Billion in Short Liquidations

Bitcoin short-sellers faced a brutal shakeout as the world’s largest cryptocurrency surged to fresh all-time highs, triggering over $1 billion in liquidations within 24 hours. This included around $570 million in Bitcoin shorts and nearly $207 million in Ether shorts, as Bitcoin hit $116,500 and Ether touched $2,990. The surge marks Bitcoin’s second consecutive day of setting new records, with Wednesday’s peak at $112,000 being swiftly surpassed. The rally lifted the total crypto market capitalization by 6% over the past day to $3.68 trillion.

The swift upward move caught many in the market off guard. Crypto analysts and traders described the price surge as a “MASSIVE Short squeeze on BTC & ETH.” This liquidation event, while significant, was smaller than the one recorded on February 3, when over $2.24 billion in positions were wiped out amid fears of a global trade war. Despite these past shakeouts, Thursday’s squeeze was notable for the speed at which Bitcoin moved past its previous record levels.

Earlier in the week, analysts were divided on Bitcoin’s near-term potential to break new highs. Some noted that BTC was showing a “lack of follow-through strength,” with bulls appearing hesitant without a clear macro catalyst. Others, including Michael van de Poppe, were more optimistic, predicting that the inevitable breakout to an ATH on Bitcoin might even happen during the upcoming week. For now, market participants are watching closely to see if BTC can hold above its new highs or push further. If Bitcoin retraces to Wednesday’s level of $112,000, around $2.11 billion in long positions could be at risk of liquidation, adding another layer of tension as traders recalibrate in the face of BTC’s latest historic climb.

Bitcoin's price surged to an unprecedented high, reaching $116,664 on July 11, 2025. This surge was driven by a combination of factors, including accelerating institutional demand, surging ETF inflows, and renewed political tailwinds. The rally caught many traders off guard, triggering the highest wave of liquidations in years. This shift in momentum signaled a powerful change in the market dynamics. The latest price spike came as the market structure turned decisively bullish. A short-term breakout signal had been triggered, historically followed by median gains of 20%. This implied a price target near $133,000 by September. The Crypto Fear & Greed Index moved into the "Greed" zone as Bitcoin hit a new all-time high (ATH).

Behind the scenes, the landscape had been quietly shifting. Implied volatility recently hit its lowest levels in months, giving traders cheap access to upside bets. Many traders had been underexposed following June’s options expiry, leading to a scramble to reposition. Over $1.14 billion in leveraged positions were liquidated in the past 24 hours alone, with nearly $1.02 billion coming from short traders. Bitcoin accounted for more than half of the total carnage, with $591 million in liquidations. This new wave of volatility comes as crypto-friendly policies gain traction. In March, an executive order was signed to establish a national crypto reserve. His administration has since appointed pro-crypto voices to key positions. Meanwhile, businesses are deepening their involvement in the crypto market. With steady ETF demand, easing macro conditions, and regulatory tailwinds, many traders now see this breakout as the start of a broader uptrend.

According to 10X Research, Bitcoin may be transitioning into a higher trading range. Since mid-April, Bitcoin ETFs have bought $15 billion worth of BTC, causing prices to rally. As crypto markets heat up once again, all eyes are on next week’s US CPI print and the start of “Crypto Week” in Washington, both of which could offer fresh catalysts or risks for the world’s most closely watched digital asset.